@Tuna: I was using a strategy in intraday, which was fetching me a sound profit each and every day with continuous 10 days non-stop. Would be glad to get your comments on it.
It is not exactly a trend following strategy right from 09:15 am
, but works 95% of the time as i have seen. The drawback is, it fetches you lesser points unlike a trend
@bpr Agree with you, each and every bit of it, sirjee, thank you once again for the post.
Caution: Few Harsh words Ahead !!
Let me be very candid, no intraday strategy (which is consistently tradable, i.e. one can verify and validate the setup and trigger in a humanly possible reaction time) can yield such a high strike rate
if that has a greater than > 1 RR. So myself (and of course other TJI members) would be very interested to know how you derive 95% figure. Do let me know what is your SL for that 1 or 2 points you earn. is it > risk? if yes, how much?
And of course if it was the stat based on just last 6 months or some long backtest. See, getting 10 sessions of winning streak is no mean achievement, but that is not enough to sign off the trading style. All things boils down simple Math (Win-Rate & RR combination)
So if you have 95% with RR > 1 , I will pay you 4 Lakhs (I mean it, give your bank a/c no, I will transfer) to buy your strategy. Provided I am sure, it is tradable.
I don't know anything how you trade - but let me guess, your SL is wider than your target.
Is that right?
Now let me give you an example, I know a guy from my trading group who has a win-rate of around 70% (still less than yours) but he still ends his months in Red. The reason, the payoff sucks. He trades for 12 points with a SL of 50 points (RR = 1/4), yeah funny.
With such a wide net, he of course catches the small fishes from the pond more frequently than others - thats a huge win-rate. But the day SL gets hit, a single loss makes him lose more than 4 winning trades. Eventually, he is ending in red more or less every month. And a losing streak of 4 trades has blown his account. Another bad aspect (similar to the first post of your on this thread), his trading style shows that he is loss-avert & is kin to win every time by any means. As result, on the days when his SL is about to get hit, he drags it wider as he induced to the belief that it will make a U-turn to the profit zone, because it did > 70% time. And he also does average of losing trades (like you did, I believe you usually do that many time, which resulted in profit), But, then
Then, one of these days come:
“If you can’t take a small loss, sooner or later you will take the mother of all losses.” - Ed Seykota
I guess you just did that on your last trade.
I have
self-imposed limitations on my thinking and interpreting charts, which I developed after so many years of practices. So essentially, I do the trade as a
block-head, where no other idea comes to my mind. Having said that, this post of mine is not at all meant for discrediting or discouraging your trading style. As my way definitely not the only way to trade.
So, do share your method to this forum, let it go under lenses of all other like-minded traders, they will point out if it is the right way or are there many loopholes.